BELL RINGERBELL RINGER

• 1) Who was Erich von 1) Who was Erich von Ludendorff ?Ludendorff ?

• 2) Who were the Big Three?2) Who were the Big Three?• 3) List some of German 3) List some of German

conditions and complaints conditions and complaints about the Peace treaty of about the Peace treaty of Versailles.Versailles.

Ch.17 Section1Ch.17 Section1

““The Futile Search for The Futile Search for Stability”Stability”

Uneasy Peace: 1919-1929Uneasy Peace: 1919-1929

• League of Nations:League of Nations:• Didn’t maintain the peaceDidn’t maintain the peace• U.S. didn’t joinU.S. didn’t join• League could not use force League could not use force

against aggressionagainst aggression

French DemandsFrench Demands• Wanted Germany to pay for warWanted Germany to pay for war• French Army occupied the Ruhr French Army occupied the Ruhr

Valley, an industrial and mining Valley, an industrial and mining center. center.

• French planned to take the French planned to take the reparations by operating German reparations by operating German industries themselves. industries themselves.

(Germany owed 33 billion dollars)(Germany owed 33 billion dollars)

(Germany pay 2.5 billion in 1921 but (Germany pay 2.5 billion in 1921 but couldn’t after)couldn’t after)

Inflation in GermanyInflation in Germany• Germany’s economy was Germany’s economy was

horrific.horrific.• German marks were German marks were

worthless. worthless. • Huge inflation meant that Huge inflation meant that

people suffered terribly.people suffered terribly.• Political unrest in Germany.Political unrest in Germany.

Marks- Dollars Marks- Dollars

•1914 – 4.2 marks = 1 dollar.1914 – 4.2 marks = 1 dollar.•Beg. Nov. 1923 – 130 billion Beg. Nov. 1923 – 130 billion

marks = 1 dollar.marks = 1 dollar.•End Nov. 1923 – 4.2 trillion End Nov. 1923 – 4.2 trillion

marks = 1 dollar. marks = 1 dollar.

Charles DawesCharles Dawes

The Dawes Plan (1924)The Dawes Plan (1924)• Loan to Germany to help (200 Loan to Germany to help (200

million)million)• Reduce the reparationsReduce the reparations• Coordinates Germany’s Coordinates Germany’s

payments with what the nation payments with what the nation could affordcould afford

• Treaty of Locarno in 1925 between Treaty of Locarno in 1925 between the French and Germans which the French and Germans which guaranteed Germany’s western guaranteed Germany’s western borders. Seen as the beginning of a borders. Seen as the beginning of a lasting peace. lasting peace.

The Great DepressionThe Great Depression

•1924-1929 period of 1924-1929 period of prosperity.prosperity.

•Depression- a period of Depression- a period of low economic activity low economic activity and rising and rising unemployment.unemployment.

Causes of DepressionCauses of Depression

• I. Series of downturns in the economies I. Series of downturns in the economies of individual nations.of individual nations.

• Ex) prices falling b/c of rapid Ex) prices falling b/c of rapid overproduction.overproduction.

• II. Internal financial crisis involving the II. Internal financial crisis involving the U.S. stock.U.S. stock.

• European prosperity was built on loans European prosperity was built on loans by U.S. to Germany.by U.S. to Germany.

• U.S. investors pulled their money out of U.S. investors pulled their money out of European banks.European banks.

Responses to the Responses to the DepressionDepression

• Gov’t become more involved in Gov’t become more involved in the economy.the economy.

• Communism becomes popular.Communism becomes popular.• People turn to political People turn to political

leaders who had a solution leaders who had a solution (dictators)(dictators)

Democratic States after Democratic States after the War: the War: GermanyGermany

• William II out, William II out, Weimer Republic in. Weimer Republic in.

• No political leader No political leader emerged.emerged.

• Economy badEconomy bad• Depression paved Depression paved

the way for the way for extremist party.extremist party.

FranceFrance

• Strongest on Strongest on continent.continent.

• Economy Economy descentdescent

• B/w 1932-1936 B/w 1932-1936 political strife.political strife.

Great BritainGreat Britain

• Unemployment Unemployment rose during the rose during the period.period.

• Conservative Conservative Gov’t lead Gov’t lead Britain out of the Britain out of the DepressionDepression

United StatesUnited States

• Other than Other than Germany, U.S. Germany, U.S. was hit was hit hardest by hardest by the Great the Great Depression.Depression.

• 1933- 12 1933- 12 million million unemployed.unemployed.

Franklin Delano RooseveltFranklin Delano Roosevelt

FDR’s New DealFDR’s New Deal

• 1932 Roosevelt elected 1932 Roosevelt elected president.president.

• His New Deal:His New Deal:- Active Gov't in the economyActive Gov't in the economy- Increase public worksIncrease public works- Welfare systemWelfare system- Social Security ActSocial Security Act

• 1933 – 12 million unemployed1933 – 12 million unemployed• 1938 - 10 million unemployed1938 - 10 million unemployed• World War II and weapon industries World War II and weapon industries

brought the U.S. to full brought the U.S. to full employment. employment.

REVIEWREVIEW

• 1) Why did the League of 1) Why did the League of Nations fail?Nations fail?

• 2) What were the causes of the 2) What were the causes of the depression?depression?

• 3) Who was FDR?3) Who was FDR?